Mês: Dezembro 2021

Conversely, Walmart retail stores have low fixed costs and large variable costs, especially for merchandise. Because Walmart sells a huge volume of items and pays upfront for each unit it sells, its cost of goods sold increases as sales increase. For example, a software business has greater fixed costs in developers’ salaries and lower variable […]

If there’s an economic downturn or the business struggles to sell its product or service, its profits could plummet since its high fixed costs will remain the same, regardless of how much the company is selling. The revenues of company XYZ are $ 58.6 million, and that of company LMN are $ 32.7 million. The […]